Investment Potential

The Caribbean's Dominican Republic is a
land of colors with its red, white and tropical blues. But it's all about the
green that has people buzzing these days.

The island nation may have been an
undiscovered country to Americans just three or four years ago, but today it is
paradise found. Real estate projects in this Spanish-speaking country are
sprouting like palm trees.

"The United States market is now
beginning to identify the values and the opportunities that lie here in the
Dominican Republic, particularly in a project like Cap Cana, which is aiming to
the highest end of the world market,” said Ellis Perez, president of Cap
Cana.

Cap Cana, a project hugging the island's
southeast coast, will be the country's largest private community — a mammoth
30,000 acres — with plans for five hotels, five golf courses and thousands of
homes. It's just beginning to take shape with hundreds of millions in foreign
dollars, 33 percent of which is American.

Real estate in the Dominican Republic is
so hot that even before they broke ground at the project Roko Ki they had sold
$100 million in properties, 90 percent to Americans — that too, all in one
day.

Roko Ki's natural beauty is undeniable.
Investors are banking on another seaside jaw dropper, with jungle bungalows for
the rich and famous, signature golf courses and fancy villas, signaling even
more American interest. The hotel chain Starwood Resort Worldwide is building a
Westin.

"In between 10 and 15 years we expect
Roko Ki to have 8,000 residences and about 6 to 7 high end, five-star hotels,”
said Nick Tawil Fernandez, president of the Roko Ki Westin.

Factors responsible for the recent
Dominican Republic fever are varied. They range from a series of Dominican
baseball stars, a democratic government encouraging foreign dollars, a number of
new direct flights from the United States and a lot of recent good press. These
reasons coupled with bargain land prices and cheap labor have helped put the
Dominican on the map like never before.

"It's just very welcoming, very
hospitable and once you've come here you want to come back,” said Tawil
Fernandez of the Roko Ki Westin.

Many Americans fall in love with the
Dominican while on vacation. A record number of tourists visited this past
season after Hurricane Wilma pummeled Cancun, Mexico.

Even Hollywood is taking notice. Recently
Brad Pitt was flying about the island looking for his piece of paradise. Fellow
actor Vin Diesel is planning on building in Boca Chica and Robert Deniro is also
actively looking.

Nestled between Cuba and Puerto Rico on
Hispaniola, the Dominican shares this 29,000-square mile island with Haiti.

Poverty remains harsh realityIslanders like to say Christopher Columbus was
the first tourist here. Historians believe Columbus landed on Hispaniola before
making it to the new world. Today well-paid tourism-related employees earn
between $100 and $140 a month. Nonetheless, the poverty is undeniable — the
poorest being an estimated 1 million Haitians who work in sugarcane farms or
construction.

Dominican Secretary of Tourism Felix
Jimenez recognizes that low wages are part of the draw but also says foreign
money is raising the standard of living.

"My country is a poor country, but we are
working and investing a lot of money in new roads, electrical supplies, water
supply to help build a modern country,” says Jimenez.

That progress is increasingly visible and
is encouraging investments from around the world.

Recently a German businessman sank $50
million into a marine adventure park on the north coast, Ocean World, which has
been drawing tourists from all over the country.

Wall Street money manager Boykin Curry
and a group of investors recently took the plunge on the island's breathtaking
north coast and bought up to 2,000 acres to develop in Playa Grande at a bargain
$55 million — golf course included.

"He has seen not only the cooperation of
the government, but also of key individuals and key development partners in the
country that can help us,” said Carl Carlson, CEO of Playa Grande Holdings.

"We have seen a lot of interest from
golfers and from people in the industry and everybody is expecting a lot from
us,” he added.

Down the road from Playa Grande is
picturesque Cabarete beach —a water sports mecca for world-class wind and kite
surfers — that has made a splash with Americans.

"Valero is 5 years old, and at the
beginning we had a base of international owners, almost 10 percent were
American,” said Mario Magnan, general manager of Valero Beach.

Retirees drawn to service factorAmerican retiree Phyllis Berney from Wisconsin
discovered the Dominican Republic was a bargain a long time ago, but it's the
Dominican people that sold her on staying.

"My mom is going to be 98 in November,
and she said, 'Where else could I be that someone could be so kind they actually
help me put on my shoes, that I have someone with me all the time?'” said
Berney. "'I don't need a walker because when I want to walk someone walks with
me.'”

Five years ago Jason and Michelle
Matthews from Philadelphia discovered the Dominican Republic while on vacation.
They now live part-time on a farm on the north coast. They also own a 15,000
square foot beachfront villa that cost them $2 million dollars and that they
rent out to other Americans.

"I think most Americans have discovered
what Columbus discovered a long time ago, particularly on the north coast, it's
still an unspoiled pristine paradise. It's not over-invested, not
over-developed,” said Matthews.

The trick will be keeping it that
way.

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